Assertion (A): A student who wants a costly phone but cannot afford it has no demand for it, in the economic sense.
Reason (R): Demand is the quantity of a good that a consumer is willing to buy and is able to afford, given prices and her income.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both (A) and (R) are true and (R) is the correct explanation of (A).
Assertion (A): A student who wants a costly phone but cannot afford it has no demand for it, in the economic sense. — True. A wish alone is not demand. The student is willing to buy but not able to pay.
Reason (R): Demand is the quantity of a good that a consumer is willing to buy and is able to afford, given prices and her income. — True. Demand needs both willingness and ability to afford.
Why R explains A?
R gives the two conditions for demand. The student meets the first, willingness, but fails the second, ability to afford. So the quantity she demands is zero, which is A.
NCERT (2026-27): “Derivation of Demand Curve in the Case of a Single Commodity (Law of Diminishing Marginal Utility) Cardinal utility analysis can be used to derive demand curve for a commodity. … The quantity of a commodity that a consumer is willing to buy and is able to afford, given prices of goods and income of the consumer, is called demand for that commodity. Demand for a commodity x, apart from the price of x itself, depends on factors such as prices of other commodities (see substitutes and complements 2.4.4), income of the consumer and tastes and preferences of the consumers. …” |